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choli [55]
3 years ago
14

On January 1, 2018, Bonita Corporation issued $5900000, 10-year, 9% bonds at 101. Interest is payable annually on January 1. The

journal entry to record this transaction on January 1, 2018 is
Business
1 answer:
GREYUIT [131]3 years ago
3 0

Answer and Explanation:

The journal entry to record the issuance of the bond is shown below

On Jan 1, 2018

Cash (5,900,000 × 101%) $5,959,000

      Bonds Payable $5,900,000

      Premium on Bonds Payable $59,000

(Being the issuance of the bond is recorded)

Here the cash is debited as it increased the assets and credited the bond payable & premium on bond payable as it also increased the liabilities

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The benefits of portfolio diversification are highest when the individual securities within the portfolio have returns that: var
AnnZ [28]

The benefits of portfolio diversification can be obtained if the fund manager adds the stocks which are less than perfectly correlated. In other words, the stocks in a portfolio should have coefficient correlation lesser than 1. The market portfolio is considered to be fully diversified, this is why if the stocks with high correlation with market portfolio is added to our own portfolio, it will approach to the fully diversified portfolio and help in reducing the total risk.

3 0
3 years ago
hich of the following is NOT one of the six questions that comprise the task of evaluating a company's resources and competitive
Vadim26 [7]

Answer:

The correct answer is "What are the company's most profitable geographic market segments?"

Explanation:

In order to research on the companys' resource and competitive position, a researcher does not need to ask questions related to the geographic market segments.

Geographic market segments refer to the geographical spread of the market of a company.

I hope the answer is helpful.

Thanks for asking.

4 0
3 years ago
A firm has sales of $690, EBIT of $300, depreciation of $40, and fixed assets increased by $265. If the firm's tax rate is 40 pe
icang [17]

Answer:

-$45

Explanation:

Given that,

Sales = $690

EBIT = $300

Depreciation = $40

Tax rate = 40%

Fixed assets increased by $265.

Firm's free cash flow:

= Earnings after tax + Depreciation - Capital Expenditure

= [EBIT × (1 - Tax rate)] + $40 - $265

= [$300 × (1 - 0.40)] + $40 - $265

= $180 + $40 - $265

= -$45

Therefore, the firm's free cash flow -$45.

3 0
3 years ago
Global Stores is downsizing and must let some employees go. Employees volunteering to leave are being offered a severance packag
katen-ka-za [31]

Answer:

$127,020

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 4 = $37,500

I = 7%

PV = $127,020

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

4 0
3 years ago
the design of a service system often is used by management to the cost of capacity in relation to the expected cost of customers
ale4655 [162]

The design of a service system often is used by management to Balance the cost of capacity in relation to the expected cost of customers waiting.

<h3>What is expected cost?</h3>

Expected expenses are the estimates of prices that you enter before you receive the item's invoice, such the price of a purchased item. Both inventories and the general ledger can be updated with predicted costs.

This is what the functionality performs, according to Dynamics NAV help: Expected expenses are the calculations you do before you actually receive the invoice for the item, such as the price of a purchase. Both inventories and the G/L can be updated with predicted costs.

The amount of money held in a financial institution, such as a savings or checking account, at any particular time is known as the account balance. The net amount, which includes all debits and credits, is always the account balance.

When a company or other entity invests money to increase operations or production capacity, it incurs a capacity cost. Costs associated with capacity are a fundamental component of conducting business and are particularly important for start-up and expanding businesses that aim for quick expansion.

Hence, The design of a service system often is used by management to Balance the cost of capacity in relation to the expected cost of customers waiting.

To learn more about expected cost refer to:

brainly.com/question/25799822

#SPJ4

6 0
2 years ago
Read 2 more answers
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